Pacific Biosciences of California, Inc. (PACB): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Pacific Biosciences of California, Inc. (PACB) is revolutionizing genomic sequencing? Despite a challenging year in 2024, marked by a 33% decrease in quarterly revenue to $39.2 million, PacBio has launched innovative products like the Vega system and SPRQ chemistry, setting the stage for potential growth. Join us as we delve into PacBio's history, ownership, mission, and how its cutting-edge technology is making waves in the world of genomics, with the goal of sequencing a HiFi long-read human genome for under $500.

Pacific Biosciences of California, Inc. (PACB) History

PacBio Founding Timeline

Year established

PacBio was established in 2004.

Original location

The company was originally located in Menlo Park, California.

Founding team members

The founding team included:

• Stephen Turner
• Benjamin Hindson
• Hesaam Esfandyarpour
• প্য়া George Roberts

Initial capital/funding

PacBio's initial Series A funding in 2004 secured $14.8 million. Subsequent funding rounds included $40 million in Series B in 2007, and $68 million in Series C in 2008.

PacBio Evolution Milestones

PacBio Transformative Moments

• Technology Development: The development and refinement of Single Molecule, Real-Time (SMRT) sequencing technology has been central to PacBio's identity. SMRT sequencing allows for long read lengths and high accuracy, which is particularly valuable in de novo genome assembly, structural variant detection, and epigenetics.
• Product Launches: Each new sequencing platform (PacBio RS, RS II, Sequel, and Revio) has represented a significant leap in technology and market reach. The launch of the Revio system in 2021, for example, was transformative due to its potential to democratize HiFi sequencing with increased throughput and reduced costs.
• Strategic Decisions: Strategic decisions, such as the terminated acquisition of Omniome in 2019, have influenced the company’s direction. The decision to remain focused on its core SMRT technology has allowed PacBio to refine and improve its unique sequencing capabilities.
• Market Expansion: Expansion into new markets and applications, such as clinical research and diagnostics, has broadened PacBio's revenue streams and impact on genomic research.

To gain further insights into the core values that drive the company, explore Mission Statement, Vision, & Core Values of Pacific Biosciences of California, Inc. (PACB).

Pacific Biosciences of California, Inc. (PACB) Ownership Structure

Understanding the ownership structure of Pacific Biosciences of California, Inc. (PACB) provides insights into who controls the company and the distribution of its equity.

Pacific Biosciences of California, Inc. (PACB) Current Status

Pacific Biosciences of California, Inc. is a publicly traded company, meaning its shares are available for purchase on the stock market by the general public.

Pacific Biosciences of California, Inc. (PACB) Ownership Breakdown

The ownership of Pacific Biosciences is distributed among various types of shareholders, including institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership breakdown:

Pacific Biosciences of California, Inc. (PACB) Leadership

The leadership team guides the strategic direction and operational execution of Pacific Biosciences. Key members of the leadership team as of April 2025 include:

• Christian Henry: President and Chief Executive Officer
• Susan K. Barnes: Chief Financial Officer
• Jeff Eidel: Chief Commercial Officer

To gain a deeper understanding of the company's goals, see: Mission Statement, Vision, & Core Values of Pacific Biosciences of California, Inc. (PACB).

Pacific Biosciences of California, Inc. (PACB) Mission and Values

The company's mission is to enable the promise of genomics to better human health, while its core values emphasize innovation, collaboration, and dedication to customers.

Pacific Biosciences of California, Inc. (PACB) Core Purpose

Official mission statement

To enable the promise of genomics to better human health.

Vision statement

While a specific, separate vision statement may not be explicitly declared, the company's actions and goals suggest a vision focused on:

• Leading the field of long-read sequencing to provide the most complete and accurate view of genomes.
• Impacting human health through enabling a deeper understanding of biology and disease.
• Expanding the applications of its technology into new areas such as drug discovery, agriculture, and environmental science.

Company slogan/tagline

Pacific Biosciences does not have a single, well-known tagline. However, messaging frequently emphasizes:

• The power and completeness of its long-read sequencing technology.
• The accuracy and insights gained from its data.
• Enabling a more profound understanding of the genome.

To learn more about the company's investors, visit: Exploring Pacific Biosciences of California, Inc. (PACB) Investor Profile: Who’s Buying and Why?

Pacific Biosciences of California, Inc. (PACB) How It Works

Pacific Biosciences (PacBio) develops, manufactures, and markets advanced sequencing systems that enable scientists to study the genome, transcriptome, and epigenome, facilitating advancements in areas like drug discovery, personalized medicine, and agriculture.

PacBio's Product/Service Portfolio

PacBio's Operational Framework

PacBio’s operations are centered around developing, manufacturing, and commercializing its sequencing technology. Here’s a breakdown:

• Research and Development: A significant portion of PacBio's resources is dedicated to R&D to enhance its existing technology and develop new products.
• Manufacturing: PacBio manufactures its sequencing systems and consumables, ensuring quality control and efficient production.
• Commercial Operations: PacBio markets and sells its products through a direct sales force and distributors, targeting research institutions, clinical labs, and pharmaceutical companies.
• Service and Support: The company provides comprehensive support services, including training, maintenance, and application support, to ensure customer satisfaction and optimal instrument performance.

PacBio's Strategic Advantages

• Long-Read Sequencing Technology: PacBio's SMRT sequencing technology provides long reads, which are crucial for resolving complex genomic structures and variations that short-read sequencing technologies may miss.
• High Accuracy: PacBio's HiFi sequencing offers high accuracy, reducing the need for extensive error correction and improving the reliability of results.
• Direct Methylation Detection: PacBio's technology can simultaneously detect DNA sequence and methylation, providing valuable epigenetic information.
• Comprehensive Solutions: PacBio offers an integrated solution, including instruments, consumables, and software, streamlining the workflow for researchers and clinicians.

To gain more insights into the financial aspects, consider reading: Breaking Down Pacific Biosciences of California, Inc. (PACB) Financial Health: Key Insights for Investors

Pacific Biosciences of California, Inc. (PACB) How It Makes Money

Pacific Biosciences of California, Inc. (PacBio) generates revenue primarily through the development, manufacturing, and sale of advanced sequencing systems and related products used in genetic analysis.

PacBio's Revenue Breakdown

Here's a breakdown of PacBio's revenue streams based on the latest available information:

PacBio's Business Economics

PacBio's business economics are influenced by several key factors:

• Pricing Strategy: PacBio employs a premium pricing strategy for its sequencing systems, reflecting the advanced capabilities and accuracy of its long-read sequencing technology. The list price of the Revio system is $779,000.
• Consumables Demand: A significant portion of PacBio's revenue comes from consumables, which are reagents and other materials required for running the sequencing systems. The demand for consumables is directly linked to the installed base of PacBio instruments and their utilization rates.
• Service Agreements: Service and support contracts contribute to recurring revenue, ensuring a stable income stream alongside instrument and consumables sales.
• Partnerships and Collaborations: Strategic alliances with research institutions and other companies in the genomics space can drive adoption of PacBio's technology and expand its market reach.
• Economic Factors: Overall economic conditions and research funding levels can impact the capital expenditure budgets of PacBio's customers, influencing instrument sales.

PacBio's Financial Performance

Key aspects of PacBio's recent financial performance include:

• Revenue Growth: For the full year 2024, PacBio reported revenue of $200.5 million, representing an increase of approximately 16% compared to 2023. This growth was driven by increased instrument sales and higher consumables revenue.
• Gross Margin: PacBio's gross margin for 2024 was 44.4%, compared to 36.7% in 2023. The improvement in gross margin was primarily due to higher instrument sales and improved manufacturing efficiencies.
• Operating Expenses: Operating expenses for 2024 totaled $334.2 million, compared to $343.8 million in 2023. The decrease in operating expenses was mainly due to reduced research and development expenses.
• Net Loss: PacBio reported a net loss of $244.1 million for 2024, compared to a net loss of $288.3 million in 2023. The reduced net loss reflects higher revenue and improved gross margin, partially offset by increased operating expenses.
• Cash Position: As of December 31, 2024, PacBio had approximately $551.4 million in cash, cash equivalents, and investments. This strong cash position provides the company with financial flexibility to invest in future growth initiatives.

To gain more insights into PacBio's mission, vision, and core values, you can explore Mission Statement, Vision, & Core Values of Pacific Biosciences of California, Inc. (PACB).

Pacific Biosciences of California, Inc. (PACB) Market Position & Future Outlook

Pacific Biosciences (PacBio) is strategically positioned to capitalize on the growing demand for long-read sequencing, with a focus on improving accuracy and reducing costs. While facing competition, PacBio's technological advancements and strategic partnerships are expected to drive future growth.

Competitive Landscape

Opportunities & Challenges

Industry Position

PacBio holds a significant position in the long-read sequencing market, distinguished by its SMRT technology that delivers high accuracy. The company focuses on:

• Advancing its sequencing platforms to improve performance and reduce costs.
• Expanding its applications in key areas such as human genetics, cancer research, and infectious disease.
• Building strategic collaborations to broaden its market reach and accelerate innovation.

Further insights into PacBio's financial standing can be found at: Breaking Down Pacific Biosciences of California, Inc. (PACB) Financial Health: Key Insights for Investors